South America

Turkish and Argentine assets have been battered over the past few months, but one investor believes that both countries can provide good value and is expanding its exposure.

Coca Cola’s Chile-based bottling business wrapped up meetings with local investors on Friday as it planned to replace international debt with domestic bonds.

Yields on Argentina’s dollar-denominated debt hit their tightest levels since early August on Thursday after the IMF increased the size of its financing package from $50bn to $57.1bn.

The IMF and Argentina’s announcement of a new improved financing package came after markets closed on Wednesday, but bond investors say it can be positive for the country's sovereign bonds.

Argentina’s bond rally may not have much further to run even if the country does clinch a larger deal with the IMF, as investors turn their focus to president Mauricio Macri’s challenge in retaining popularity.

Any bond market activity from Brazilian issuers before October’s elections will be focused on liability management, said DCM bankers after Braskem announced it would be redeeming some of its perpetual notes.

Brazilian pulp and paper producer Suzano Papel e Celulose’s CFO told GlobalCapital that he believes the company would have had to pay a higher rate on its latest dollar bond had it chosen to issue immediately after its roadshow.

Brazilian pulp and paper producer Suzano Papel e Celulose’s CFO told GlobalCapital that he believes the company would have had to pay a higher rate on its latest dollar bond had it chosen to issue immediately after its roadshow.

The Middle East is continuing its domination of the CEEMEA primary market and even the Latin America new issue market is starting to see some action as a run of successful bonds in the last fortnight is helping to bolster investor confidence.

Argentine state-owned oil and gas company YPF said on Tuesday that it would buy back $176.245m of the $452.198m in dollar bonds it is due to repay on December 19.

Brazilian state-owned development bank Banco Nacional de Desenvolvimento Econômico e Social (BNDES) will buy back nearly $650m of existing bonds, including over half of its existing green bond.

Latin American DCM bankers are hoping that Brazilian pulp and paper producer Suzano Papel e Celulose gave the market the fillip it needed as the borrower enjoyed smooth execution on a surprise outing on Monday.